If the government does not provide it, the quantity of a nonexcludable good that private firms will choose to produce is
A)zero.
B)more than the optimal amount.
C)the optimal amount.
D)optimal only if property rights are assigned.
E)optimal only if the industry is competitive.

Question

Quizplus · Accepted Answer

Nonexcludable goods, such as public goods, are not typically produced by private firms in sufficient quantities because they cannot prevent non-payers from consuming the good, leading to a lack of profit incentive.

If the Government Does Not Provide It, the Quantity of a Nonexcludable